Sell-side firms must scale their technology infrastructure to process higher trading volume, meet regulatory compliance requirements, expand geographies, and manage pre-trade risk while dealing with more counterparties―all while ensuring the best execution services are provided. Firms that invest in more robust risk management tools and capabilities are better positioned to gain market share from increasingly demanding clients while managing change from dynamic external and internal forces more effectively.

This report explores the key elements of managing pre-trade and regulatory risk and the factors driving sell-side firms to invest significantly in developing innovative solutions. It is based on market trends observed around pre-trade analytics, a virtual discussion with members of Datos Insights’ Investment Operations Council, and 15 discussions held between January 2024 and June 2024 with industry participants, including large and midsize broker-dealer firms.

Clients of Datos Insights’ Capital Markets service can download this report.